Joby Aviation stock price has soared: is it too late to buy?

Joby Aviation stock price continued its strong momentum, reaching a high of $10.72, its highest level since July 2023. It has surged by over 130% from its lowest level in 2024, pushing its market cap to over $7.52 billion. 

Joby’s stock performance has mirrored that of other top electric vertical lift-off and take-off (eVTOL) companies in the US, especially Archer Aviation, which has soared by over 300% from last year’s lowest point. So, will the JOBY share price continue rising?

Joby Aviation’s business is doing well

Joby Aviation stock price continued its strong rally as investors changed their views about the company after plunging to $4.53 last year. 

This recovery also happened after Needham analysts upgraded the eVTOL sector. In a note, the analysts noted that JOBY and ACHR were well-positioned to win in a sector that could be worth over $1 trillion by 2040,

Needham also noted that the company was nearing the end of its cash burn phase as the two firms are aiming to gain their final FAA approvals either this year or in 2026.

Just recently, Joby announced that the FAA had completed the static load testing of its tail structure, a crucial step in the certification process. In the tests, the tail structure was applied with more load than needed by the current regulations.

Therefore, analysts expect that Joby may receive all the documents it needs to start manufacturing and operating its air taxes later this year. 

More progress is happening

Joby Aviation has also done more work behind the scenes. It has marketed its solutions in key countries like in Brazil, United Arab Emirates, and Japan.

It has also worked to solve some of its toughest challenges: financing. Toyota, one of its core investors, added to its investors by allocating about $500 million to the company. The relationship will also see Toyota, one of the biggest manufacturers, help it build its aircraft. 

Archer Aviation has also received substantial sums of money from Stellantis, the parent company of Jeep and Fiat. That’s a sign that automakers expect the air taxi industry to be highly robust. 

Joby now has over $1.4 billion in cash and investments, which it hopes will last a while as it continues with R&D and plant construction.

The most recent results showed that Joby’s net loss stood at $145 million, bringing the trailing twelve-month loss to $476 million. These losses will likely continue, meaning that the company will likely raise more cash as it works on breaking even. That potential capital raise is a major risk that investors should be aware of.

We have seen this capital raise in the past among other companies, especially among those in the electric vehicle sector. Firms like Rivian and Lucid Motor have continued raising cash, many years after starting to deliver their vehicles.

Joby Aviation stock price analysis

The daily chart shows that the JOBY share price has been in a strong uptrend in the past few months. It has jumped from $4.53 in April to $10.7 this week. It recently crossed the important resistance level at $9.35, the highest swing on December 2. By moving above that level, the stock invalidated the risky double-top pattern.

The Joby Aviation share price formed a golden cross pattern as the 50-day and 200-day moving averages flipped. The Relative Strength Index (RSI) and the MACD indicators have also continued rising.

Therefore, the stock will likely continue rising as bulls target the key resistance level at $12, its highest swing in June 23. More gains will be confirmed if the stock moves above that level.

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